SPOTLIGHT ON MillennialsA U G U S T 2 0 1 7

E X E C U T I V E S U M M A R Y F O R N O N - S G C C M E M B E R S

© 2017 SMART GRID CONSUMER COLLABORATIVE. ALL R IGHTS RESERVED.

This research was supported by the Electric Power Research Institute (EPRI), a nonprofit organization that conducts R&D relating to the generation, delivery, and use of electricity for the benefit of the public. EPRI’s research addresses challenges in electricity, including reliability, efficiency, affordability, health, safety and the environment.

Learn more at www.epri.com.

SGCC would like to thank Dr. Paul Schwarz for his assistance in data analysis and development of this report. He provides insights and strategies for guiding organizations and end users to be more efficient consumers of energy and for navigating the transition to cleaner and more sustainable energy resources. Learn more about him at: www.linkedin.com/in/paschwarz.

Dr. Paul Schwarz

Working for a consumer-friendly, consumer-safe smart gridSGCC’s mission is to serve as a trusted source of information for industry stakeholders seeking a broad understanding of consumers’ views about grid modernization, electricity delivery and energy usage, and for consumers seeking an understanding of the value and experience of a modern grid.

Join @ www.smartgridcc.org

E X E C U T I V E S U M M A R Y F O R N O N - S G C C M E M B E R S

A full report with detailed findings is available free to SGCC members.

Please contact us to discuss membership at membership@smartgridcc.org

or visit our website at www.SmartGridCC.org.

S P O T L I G H T O N M I L L E N N I A L S | P A G E 1

© 2017 SMART GRID CONSUMER COLLABORATIVE. ALL R IGHTS RESERVED.

Millennials are more likely to be Green Champions (38% of them are classified as such) when viewed through the SGCC consumer segmentation lens.2 These consumers are characterized by the phrase “Smart energy technologies fit our environmentally aware, high-tech lifestyle.” While 33% of Millennials under 28 years of age are Green Champions, Savings Seekers and Status Quo segments are also well-represented (at 28% and 23%, respectively). These Millennials are also well-educated and very likely to be employed.

It is interesting to note that Millennials are almost as likely to own their home as they are to rent. Over half of them are likely to share their home with three or more people, while non-Millennials are more likely to live alone or in two-person households.

1 The Empowered Consumer (TEC), Consumer Driven Technologies (CDT) and Customer Experience and Expectations (CEE). These surveys are available through SGCC at http://smartgridcc.org/research/sgcc-research/

2 SGCC’s Consumer Pulse and Market Segmentation – Wave 5 report provides detailed descriptions of each segment and is available at http://smartgridcc.org/research/sgcc-research/

Though there are varying definitions of Millennials, they are defined for

the purposes of this research as anyone born between 1982 and 1999.

The findings in this report are drawn from over 1,300 respondents across

three different surveys conducted by SGCC in 2016.1

Executive SummaryAs of 2016, Millennials have overtaken Baby Boomers as the largest generation in terms of population in the United States. Recognizing this demographic shift and the growing influence of Millennials, the Smart Grid Consumer Collaborative (SGCC) commissioned this research to better understand what the rise of Millennials means for consumers of energy.

This Spotlight is intended to provide insight and guidance for stakeholders throughout the energy ecosystem by describing:

• Who Millennials are

• Their attitudes about energy

• What they think of their electricity provider

• How (and how often) they engage with their electricity providers

Who are Millennials?

S P O T L I G H T O N M I L L E N N I A L S | P A G E 2

© 2017 SMART GRID CONSUMER COLLABORATIVE. ALL R IGHTS RESERVED.

Millennials, as “digital natives”, demonstrate an affinity toward technology, and this shows in the numbers of devices, appliances and technologies they have in their homes. They are more likely to own four or more digital devices and use three or more different types of apps (e.g., transportation, navigation, restaurant, banking, social media and location sharing). Their comfort with and use of new technologies is a hallmark of this generation and poses significant challenges for energy providers trying to provide meaningful offerings and services to these younger consumers.

What do Millennials think about energy?When asked about energy efficiency, Millennials express interest in anything that may help them save money or contribute positively to the environment. In fact, Millennials’ interest in all but one of 18 energy-saving programs and offers tested far exceeds the interest of non-Millennials. However, Millennials’ adoption rates are consistently lower than non-Millennials, and this represents a sizeable opportunity that will grow as this group of consumers matures.

We also find that Millennials are more willing to pay for programs and services than non-Millennials. While younger Millennials (those 28 and younger) express concerns about being able to pay “at this time”, as a group, Millennials will pay for information or services they value. And, they support investments in renewable energy more often than non-Millennials.

What do Millennials think about their current electricity provider?

Like consumers from other generations, Millennials are satisfied with their current energy provider. This is good news, but if we dig a little further, 34% of Millennials indicate a willingness to purchase electricity from an alternative supplier given a choice. These consumers are more likely to churn when choice comes to your area if it hasn’t already.

That said, Millennials do trust the recommendations of their electricity provider when it comes to energy efficiency and energy technologies. In fact, about 50% of them are likely to invest in energy-saving technologies and programs if their utility endorses them. This, too, is good news. Electricity providers have an opportunity to educate and to provide tools that will engage this generation.

Millennials’ interest

in all but one of 18

energy-saving programs

and offers tested

far exceeds the interest

of non-Millennials.

About 50% of Millennials

are likely to invest in

energy-saving technologies

and programs if their utility

endorses them.

S P O T L I G H T O N M I L L E N N I A L S | P A G E 3

© 2017 SMART GRID CONSUMER COLLABORATIVE. ALL R IGHTS RESERVED.

When (and how) do Millennials engage with their electricity providers?

Millennials engage often and through any means available to them. Indeed, Millennials are far more likely than non-Millennials to have been in contact with their electricity provider within the last six months—and this is true for renters and home-owners alike. Each contact provides an opportunity to build knowledge, relationships and loyalty.

Millennials prefer digital communication (59% have used this channel in the last six months), but they will also leverage telephone and in-person contact. They want their interaction to be easy, so they will decide in the moment which channel is the most convenient. This may be difficult for the electricity provider to manage, particularly when platforms and contact systems are not well-integrated. But, a record of every contact is invaluable to the next interaction, especially since these consumers will leverage any and all channels available to them.

What are the implications for service providers?Recognizing the expanding influence of Millennials, SGCC commissioned this research to better understand Millennials’ attitudes, values and how they would like to engage in energy management activities and utility programs. Our findings suggest some important implications for electric utilities and other electricity service providers.

q Millennials are engaged and “ambidextrous”: You should be, too.

w Millennials are inquisitive and information hungry: Take advantage of it.

e Millennials are adept at change, and they’re willing to support it financially.

r Millennials are enthusiastic about energy and sustainability; engage them now.

Millennials

prefer digital

communication,

but they will

also leverage

telephone

and in-person

contact.

Working for a consumer-friendly, consumer-safe smart gridSGCC’s mission is to serve as a trusted source of information for industry stakeholders seeking a broad understanding of consumers’ views about grid modernization, electricity delivery and energy usage, and for consumers seeking an understanding of the value and experience of a modern grid.

Join @ www.smartgridcc.org

© 2017 Smart Grid Consumer Collaborative. All rights reserved.